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33 Undervalued Stocks for 2020

Here are our analysts' top ideas in each sector for the new year.

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U.S. stocks finished 2019 with a remarkable 31% return, as measured by the S&P 500. Not surprisingly, we think stocks are about fairly valued today: The median stock in our North American coverage universe traded at a 3% premium to our fair value estimate at year's end.

The share of 1- or 2-star stocks has surpassed those earning 4- and 5-star ratings: 32% versus 21%, observes Jeffrey Stafford, Morningstar's director of North American equity research, in his latest stock market outlook. The energy, consumer cyclical, and communication-services sectors look the least expensive.

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Susan Dziubinski does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.